The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, on Tuesday said Nigeria could no longer rely mainly on borrowing to fund development, warning that the country must build a sustainable fiscal system capable of supporting critical sectors of the economy.
Oyedele stated this while speaking at the 28th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria in Abuja.
The minister’s remarks came barely 24 hours after the Federal Government had intensified engagement with the World Bank over a fresh $1.25bn loan targeted at supporting economic reforms, job creation and competitiveness.
“Nigeria cannot continue to finance development primarily through borrowing. We must build a fiscal system capable of sustainably supporting critical infrastructure, quality education, affordable healthcare, security, and social protection,” he said.
He added that sustainability was not only about generating revenue but also about promoting growth, reducing inequality, protecting vulnerable groups, and encouraging productivity.
According to him, the Federal Government’s ongoing tax reforms are designed to make the economy more investment-friendly while improving fiscal sustainability.
Oyedele said the reforms were necessary because Nigeria’s tax system had long suffered from structural weaknesses, including multiple taxation, fragmented administration, weak compliance, and overdependence on a narrow revenue base.
